Alexander Group 2012 SaaS Benchmarking Study SaaS sales leaders looking for actionable insights to inform their 2012 strategy will receive a comprehensive set of metrics, including information on sales coverage, job roles, sales productivity, customer acquisition and retention, and sales compensation.

1. SaaS Benchmarking Study
Actionable insights for your 2012 sales strategy
© 2011 The Alexander Group, Inc.® Atlanta | Chicago | San Francisco | Scottsdale | Stamford

2. Does Your SaaS Sales Model Support
Profitable Growth?
CUSTOMER CUSTOMER CUSTOMER
$
ACQUISITION ADOPTION RENEWAL
SALES
MODEL • Low renewal rates
CHALLENGES • Contract shrinkage
• High cost service models
• Difficulty driving product adoption
• High customer acquisition cost
• Low customer growth rate
© 2011 The Alexander Group, Inc.® 2

3. Now Open: AGI SaaS Benchmarking Study
The goal of this study is to provide executives at
leading SaaS companies with actionable data to
inform their 2012 sales strategies.
Sales Coverage: What sales roles are SaaS
companies deploying at different stages of the sales
process?
Revenue and Cost: What are the most profitable
sales channels? Where are the key areas of
investment in the industry?
Sales Compensation: What are the trends in pay
practices and compensation strategy?
WHO SHOULD PARTCIPATE?
Leaders at SaaS companies looking for a detailed
set of sales-focused metrics to confirm their 2012
strategy.
© 2011 The Alexander Group, Inc.® 3

4. Targeted Participants in Pure SaaS
AGI is leveraging existing client relationships and is actively recruiting from a list of over 50
additional Pure-Play SaaS companies for this study. Targeted companies include:
Target Companies
© 2011 The Alexander Group, Inc.® 4

5. Study Includes Three Focus Areas
The SaaS Benchmarking Study collects data in three categories: 1) sales coverage
and strategy, 2) revenue and costs, and 3) sales compensation.
Coverage and Revenue and Sales
1 Sales Process 2 Sales Cost 3 Compensation
 Segmentation Model  Customer Acquisition  Average Quota Size
Cost  Average Attainment
 Sales Organization
Structure  Monthly Recurring  % of Reps at Quota
Revenue
 Coverage Models  Revenue / Sales Rep
 Monthly Sales &
 Sales Headcount Ratios  Bookings / Sales Rep
Marketing Expense
 Manager Span of Control  Base Pay
 Annual Contract Value
 Channel Mix  SPIFFs, Bonuses and
 Average Contract Length
 Sales Process Stages Variable Pay
 Customer Service Cost
 Sales Cycle Length  Pay Mix
 Average Renewal Rates
 Average Close Rate  Plan Mechanics
 Sales Enablement Costs
 Performance Measures
© 2011 The Alexander Group, Inc.® 5

6. 1
Coverage Models and Sales Process
COMMON SaaS COVERAGE MODELS See how other companies
Customer define their sales JOB
Contract
Acquisition Expansion &
Adoption
Renewal ROLES and how these
jobs align to their
FARMER
Model A
HUNTER RENEWAL SALES PROCESS.
SPECIALIST
Learn how your coverage
model productivity and
Model B
RENEWAL
HUNTER / FARMER
SPECIALIST resource deployment
compare to peer
HUNTER companies.
Model C
RENEWAL
Adoption SPECIALIST
Manager
© 2011 The Alexander Group, Inc.® 6

7. 2
Revenue and Sales Cost
% OF REVENUE BY ROUTE TO MARKET1 Understand the
IMPACT that your sales
organization structure
and cost have on key
customer metrics.
Benchmarking will help
identify opportunities to
improve productivity
Majority of SaaS revenue and utilize lower cost
is field driven, but other
channels may provide a channels.
better ROI1.
1AGI Cloud Coverage and Compensation Study, 2010
© 2011 The Alexander Group, Inc.® 7

8. 3
Sales Compensation Trends
SaaS COMPENSATION PAY PRACTICES Sales compensation can
enable or hinder SALES
BEHAVIORS and
plays a pivotal role in
enhancing sales strategy.
See if your sales comp
plan is competitive with
industry pay levels and
pay practices.
Majority of SaaS companies use booked
revenue as a compensation metric1.
1AGI Cloud Coverage and Compensation Study, 2010
© 2011 The Alexander Group, Inc.® 8

9. Study Participation: 4 Step Process
1 2 3 4
Executive Data Participant
Data Request
Interviews Validation Call Report
AGI will conduct Data collection Dedicate a Upon study
2-3 interviews with includes: resource for a completion, AGI
senior Sales and Financial metrics data validation call will provide a
Marketing submitted via before finalizing participant report
Executives to standardized submissions for (no company-
capture your go to template report specific data is
market strategy Compensation shared). Optional
and productivity plan documents report readout by
inhibitors Organization AGI
charts
© 2011 The Alexander Group, Inc.® 9

10. Participant Report Detail
Sample Report Analyses:
DATA CONFIDENTIALITY:
All data provided by
participant companies
will be held in strict
confidence
• AGI will provide participant
report that includes ONLY
aggregated information.
• AGI will strictly adhere to rules
of Safe Harbor Act regarding
data confidentiality
• NDA is available for any
company that would like to
complete prior to study
participation.
© 2011 The Alexander Group, Inc.® 10

11. Interested in Participation?
Participants Receive:
 Standard Participant Study Report
 Industry Benchmarks
 In-House Study Report Briefing
For participation details please contact: Michelle Rittenberg @ (415) 216-0514.
Visit http://www.alexandergroup.com/resources/saas-benchmarking-initiative for
additional information about the study and the Alexander Group benchmarking
practice.
© 2011 The Alexander Group, Inc.® 11